People Tree's performance

Introduction

Creating opportunities for economically disadvantaged producers

Transparency and accountability

Capacity building

Promoting Fair Trade

Payment of a fair price

Gender Equality

Working Conditions

Child Labour

The Environment

Trade Relations

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People Tree's Performance

MCC

MCC project in Bangladesh and People Tree team



Creating opportunities for economically disadvantaged producers

Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.
(IFAT, International Fair Trade Association, standard 1).

Minka
Artisan from Minka, Peru,
wearing one of his hand woven scarves.
Crafts of Africa
Kiondo artisan, Crafts of Africa, Kenya
Keya Palm
Artisan from the Keya Palm Group, MCC in Bangladesh.


1. Targeting economically disadvantaged people

People Tree's producer partners are committed to fighting poverty through trade and social development. Without exception they work towards increasing the incomes, living standards, social well being, economic and social conditions and rights of marginalized people and their communities.

53% of our partners are income generation projects of CBOs (citizen based organizations), 33% are social development organizations, 4% are charities, 20% are social businesses that are incorporated as a company. These FTO's represent farmers, poor women, indigenous people, physically challenged people, disadvantaged youths and refugees. Also highly talented crafts people whose livelihoods are being undermined by machine production, globalization and lack of market access.

What percentage of People Tree's producers originate from the following social groups?

Graph 1

%Percentage of all producers that worked on People Tree's orders from 2004 to 2006

Graph 2

One of the most easily identifiable marginalized groups in any society is women. Our producers focus on training and income generating opportunities for women, projects that support their social development. Women are also well represented in groups' management teams at 57%.





2. Creating work opportunities

People Tree's emphasis on handcrafted products provides more work for more people. Handicraft production is not capital intensive and offers opportunities to earn an income even in extremely remote areas. People Tree supports artisans with design and quality training input to develop their skills and provide a sustainable livelihood. People Tree orders also increase job opportunities and strengthen their organizations. Fair Trade enables people to work together to discuss and find ways to overcome the causes of poverty.

As can be observed in the graphs People Tree greatly increased the number of people benefiting from its orders from 2004 to 2006.

The increase was most noted with Garment producers, the number of producers working on People Tree garment orders increased by 72% from 2004 to 2006. For handcrafts and food products the increase was of 53%. It should be noted that 6 of People Tree's partners did not send any data, and therefore the current figures underestimate People Tree's actual impact.



For handicrafts and food products:

GraphTable

Family size is 5 members.

An increase of 58.5% on 2004.



Producer groups making textiles and garments

GraphTable

Family size is 5 members.

An increase of 72% on 2004.



Transparency & Accountability

Fair Trade involves transparent management and commercial relations to deal fairly and respectfully with trading partners.
(IFAT, International Fair Trade Association, standard 2)

KTS
Kiran and Gina from KTS, visiting People Tree's (Japan) head office on their Market Exposure Programme in May 2006.
Assisi
Sister Betsy and Assisi artisans looking at their products in People Tree's catalogue.
Minka
An Artisan from Minka, Peru, meeting customers and showing them how to spin alpaca.

In addition to the Social Review People Tree monitors its performance on an on going basis. People Tree has a very close and honest relationship with its producers, working together over the long term. When visiting partner producers, the People Tree team stays in the producers' villages. A Market Exposure Programme also funds 4-6 producer group representatives per year to study the market. They stay in the homes' of the founders, staff and customers of People Tree. This helps to build understanding of each others culture and expectations.

"This was a great opportunity for both of us to visit People Tree and attend World Fair Trade Day. We were able to share our experiences and explain to the Japanese public how we work as a Fair Trade organization. How rural women are involved in Fair Trade and how this benefits them and their families. In particular in supporting women and their children to get better access to better education and healthcare and our campaign against domestic violence"
Raihan Ali and Mahmuda Begum Guinea, Director of Swallows comment on the Market Exposure Programme May 2006

Producer Partnership Agreements

In addition to meeting Fair Trade standards People Tree lays down its commitment to producers in two types of agreement.

The Key Producer Agreement:

This is a 3 year agreement which, so far has been formalized with 29 partners. Key Producer Agreements are made when People Tree accounts for a significant proportion of a partner's orders, and when the trading relationship is longer than 5 years. People Tree then develops a three year Action Plan to help deepen its Fair Trade impact.

Additional support includes:

  • Product development, design, quality and technical assistance.
  • Participation in the Market Exposure Programme.
  • Assistance with environmental production and procurement.
  • Help to improve producers' organizational capacity

This is in addition to meeting the Fair Trade standards.

People Tree aims to increase orders by 10% from year to year and does not allow them to fall below 75% of the previous years.

The Social Review showed an average of 18% growth in order value (2005-2006) amongst Key producers. Garment producers, which are the largest proportion of this group showed 58% growth.

The Standard Producer Agreement:

This runs for two years and has so far been formalized with 21 producer partners. It commits to making regular orders and to providing the partner with product development and technical assistance in addition to meeting Fair Trade standards.

People Tree aims to increase orders by 10% plus from year to year. The Social Review showed an average of 25% growth in order value (2005-2006) amongst standard producers. Handicraft producers make up the majority of these.

With all producer partners People Tree checks which of their groups are making products and how much is being paid for materials, labour, transport, administration, profit and export documentation charges. Producers submit an FOB price breakdown which is verified through visits. This helps promote accurate cost accounting and transparency.

Workshops on quality, Fair Trade and pricing are regularly conducted by People Tree directly and through national Fair Trade initiatives such as ECOTA, Fair Trade Group Nepal. This strengthens local networks, allows for experience to be shared and promotes best practice in Fair Trade.

Agreements provide regular opportunities to improve Fair Trading practice and tailor our support to meet the changing needs of partners.

Example:

A producer based in Bangladesh, Jahanara Cottage Industries, was experiencing difficulties in transporting its products from rural women's groups to their head office in Dhaka. Previously products were collected by local bus, resulting in them becoming spoiled on route. Global Village (People Tree's sister NGO) provided Jahanara with a US$3000 interest free loan to buy a van to transport cane baskets. To find out more go to IFAT's 3rd standard, which addresses capacity building.

Producer information

Producer information is published on People Tree's website and articles carried in the mail order catalogues. People Tree invites producers to meet customers through events, seminars and small talks which provide customers with opportunities to meet producers.

People Tree also holds monthly company wide meetings to discuss plans, strategies and news amongst the People Tree team.

People Tree researches, prepares accounts and generally supports partners in fine tuning their Fair Trade compliance.



Capacity Building

Fair Trade is a means to develop producers' independence. Fair Trade relationships provide continuity, during which producers and their marketing organizations can improve their management skills and their access to new markets.
(International Fair Trade Association, Standard 3)

Quality Control
Quality Control workshop in Nepal.
Traditional Skills
Developing traditional skills in Bhuj, India.
Traditional Skills
Developing traditional skills in Bhuj, India.
  • 71% of Producers reported being satisfied with People Tree's capacity building activities.
    People Tree's Fair Trade partnership is based on long term relationships and interventions to promote the capacity building of its partners. These include design and technical assistance, management capacity building, running both trend and quality workshops, a market exposure programme, mutual goal setting and capacity building for Fair Trade.
  • Developing Skills and Knowledge transfer
    Developing skills help producers to meet market expectations. Through skills development and fair prices, artisans gain pride and recognition.
  • People Tree's Market Exposure Programme
    This helps producer group representatives to learn about market expectations, retail, distribution and competition. This enables them to make products that will sell and sustain orders. During the programme they also meet customers and talk at events to introduce their organization's work.

"During the Market Exposure Programme we met many Japanese buyers. We had the opportunity to communicate with them personally and received much feedback. Thanks to this feedback we are anticipating to bring much needed improvements to the quality of our products in the near future we expect to increase our sales by 40%" KTS, Nepal."

Market access

People Tree producers report gaining a real competitive edge in the market place through working with highly qualified designers and technicians. Producers are able to develop their products, make samples, procure high quality raw materials, develop stronger cost accounting skills and run quality management programmes. This helps them to access new markets and compete with non-Fair Trade handicrafts internationally.

Producer partners are not only benefiting from export orders but are also benefiting from domestic orders. One example of this is Artisan Hut, whose weaving group Shuvo now sells 80% of their products to the domestic market. This has been achieved thanks to recognition of the high quality fabrics by the local media and local government officials for producing high quality fabrics for People Tree Japan and the UK.

Producers report that People Tree initiative of World Fair Trade Day and campaigning for Fair Trade inspires them and helps them to organize and raise their profile through events which are supported by grassroots producers, business, government and the media.

"Working with People Tree has helped us become more specific on product details and more quality conscious. This is certainly an attribute that will help us in dealing with other buyers. More importantly, our relationship is based on partnership which has given us the strength to deal with Fair Trade and mainstream buyers. There is a great deal of product development from People Tree which is effective as it leads to orders most of the time."
Meera Baxx, Director Association of Craft Producers (ACP), Nepal

Capacity building for Fair Trade

People Tree works with local Fair Trade organizations in many cases this work includes building Fair Trade capacity and strengthening small groups to meet Fair Trade standards. People Tree's initiative in Bangladesh, The Dhaka Declaration (2004) on Fair Trade fashion, helped establish standards for pay in Fair Trade clothing manufacture

.

People Tree provides grants and loans for social projects through its sister NGO, Global Village. Recently People Tree awarded a grant to Swallows, in Bangladesh, to provide daycare facilities for 36 babies and preschool children of working parents.

A dormitory and dining room for weavers was built in Narshindgi, Bangladesh to improve conditions for 20 weavers. A loan was also provided to Jahanara Cottage Industries in Bangladesh for a much needed vehicle to facilitate the transport of handicrafts produced in the rural areas to the city.

Capacity building through product development and design

Over 1000 products are developed every year in collaboration with producers. People Tree has one of the largest design and technical teams of FTOs internationally. Artisans and local designers use traditional skills and participate in developing new designs.

Producers were very satisfied with People Tree's design and product development assistance and felt that it was worthwhile as it led to orders. However, some producers felt they need more technical expertise to make new products.

People Tree is our valued trading partner and through exchange of ideas we have been able to come up with new designs. We are very proud to be associated with visionary people at People Tree.
Crafts of Africa, Kenya.

Continuous product development helps us to get more and more markets for our handicrafts. People Tree input has increased the confidence, accuracy, quality and dedication of our producers.
Silence, India.

Due to the relatively short product life cycle (6 to 24 months) People Tree constantly needs to design new products as it strengthens producers' organizational capacity. This can be positive for design and product development; however it can be very challenging for smaller groups who do not have a trained design technician. Generally though, producers are keen to invest in product development to increase orders and maintain sales in the long term.

People Tree's product ideas and design ideas are of a very high standard. Our producers like them very much.
MCC Jobarpar Enterprise, Bangladesh.

Fair Trade helps People Tree's producers to run other social development programmes.

  • Medical support
  • Sanitation and health programmes
  • Nutritional education
  • Family planning
  • Low cost housing
  • Disaster relief
  • Access to safe drinking water
  • Women self help group
  • Literacy programmes
  • Social awareness and rights campaign
  • Childcare/daycare
  • Educational support
  • Legal assistance
  • Leadership training
  • Income diversification training
  • Micro credit/saving scheme
  • Only 7 of 55 producers are unable to offer their producers assistance for the schooling of their children. These are very small groups and have few customers. People Tree orders from these group are small. The majority of producers are able to support the education of producers' children either financially or by providing materials, and in some cases they run schools themselves.

    • The results of capacity building
      The Social Review reported a doubling of income against local income rates. Not surprisingly, producer partners relate that their families are able to eat three meals a day, rent good accommodation, even buy land and build their own homes. Families can afford to educate their children and save for their future, something that would have been inconceivable in the past.
    • Self Worth
      Also a livelihood gives artisans a strong sense of self worth, confidence and pride, things that cannot be bought. This had often been denied to them due to their gender, caste, ethnicity or disability.
    • They are able to change their lifestyles. Our producers are poor but when they join us they can take their food three times [a day], their children are going to school, and they have an honorable place in the society.
      MCC Jobarpar enterprise, Bangladesh.

      Producers are becoming more self reliant as they acquire more skills
      Bega Kwa Bega, Kenya.

    • Capacity building for environmentally friendly production
      An important part of this aspect of capacity building is developing environmentally-friendly production. People Tree's environmental policy helps by ordering eco-friendly products and helping producers build capacity to be able to make them. People Tree's environmental standards; include sourcing materials locally, using only natural products and recycled materials. Access to azo-free dyes and managing effluents and waste responsibly. People Tree has initiated and strengthened the supply chain for Fair Trade and organic cotton for use by producer groups. People Tree organizes training sessions and workshops to inform and transfer relevant skills. It also invests and supports partners to introduce environmentally friendly materials and production methods.

    **See more under - Environment



    Promoting Fair Trade

    Fair Trade Organizations raise awareness of Fair Trade and the possibility of greater justice in world trade. They provide their customers with information about the organization, the products, and in what conditions they are made. They use honest advertising and marketing techniques and aim for the highest standards in product quality and packing.
    (International Fair Trade Association, Standard 4)

    WTO
    World Trade Organization - Safia at Fair Trade forum in Hong Kong
    Fashion Shown
    Fair Trade fashion show in Hong Kong
    Trade Union
    People Tree brings together Trade Union leaders Amin and ECOTA, director Arshad at the 3rd session on Fair Trade capacity building
    `

    People Tree and Global Village initiated and launched World Fair Trade Day in 2003 which is endorsed by IFAT. Today we run the World Fair Trade Day Secretariat. This is seen as the key event in the calendar of the global Fair Trade movement. Producer partners and the community as a whole appreciate that this event is providing an opportunity to raise the profile of Fair Trade. It also gives FTOs an opportunity to invite high profile speakers and well wishers. World Fair Trade day achieves considerable media coverage.

    World Fair Trade Day creates opportunities to revisit Fair Trade values, celebrate skills, partnerships and achievements. In the North and South it creates an opportunity to encourage people to support Fair Trade pioneer companies and support the IFAT Fair Trade Organization mark and buy Fair Trade products. Campaigns and themes are developed and used worldwide. Events double year on year internationally and some are documented on the World Fair Trade website

    Promoting Fair Trade to government, business and the public.
    People Tree proved the success of Fair Trade fashion to the delegates of the 6th World Trade Organization Ministerial Meeting in Hong Kong. While trade negotiators were locked in debate and protesters marched outside, People Tree's pioneering fashion show was one of the key events of a three-day Fair Trade Expo held opposite the WTO meeting. Opened by the Indian minister of commerce, Mr Karmal Nath, the show profiled Fair Trade fashion and organic cotton and launched IFAT's position paper on cotton, as it campaigns for the abolition of US cotton subsidies worth over US$3 billion a year. They undermine cotton farmers in the developing world.

    People Tree and Global Village are busy throughout the year promoting Fair Trade to the public:

    • Running a number of seminars throughout the year on Fair Trade at major events, and is regularly invited to conduct presentations on Fair Trade at schools, universities, NGOs and INGOs (around 15 times a year).
    • A monthly workshop at People Tree's shops in Tokyo on Fair Trade and related issues (environment, child labour, etc).
    • People Tree's market exposure program.
    • People Tree takes part in over 15 events and festivals such as Earth Day, the Tokyo African Festival, Global Festa and AP Bank Festival in Japan and many festivals in the UK including the Green Man festival, The Big Chill and Greenbelt Festival.
    • There are regular updates on the People Tree website with Fair Trade news, and events.
    • Running an Eco-message and design competition to raise awareness, of Fair Trade and environmental issues.
    • People Tree runs a 'Fair Trade Rep' programme to promote Fair Trade and responsible shopping. Fair Trade Reps who campaign for Fair Trade in their communities and run fashion shows.
    • People Tree's work is widely covered by the media which has helped to raise the profile of Fair Trade. The founder of People Tree, Safia Minney, has been acknowledged as one of the world's leading social entrepreneurs by the Schwab Foundation, and meets with the business community during World Economic Forum events. Safia is acknowledged as a key advocate for Fair Trade.
    • "Well done for all you have achieved over the last 5 years. You have played a key role in raising the profile of Fair Trade fashion which is a remarkable achievement. Wishing you continued success for the next 5 years!"
      Jenny Silverthorne-Wright, Oxfam, Buying Manager

    • Promotion of Fair Trade capacity for producer groups
      72% of our partners are members of either IFAT or one of it's regional affiliates, COFTA in Africa, IFATLA in Latin America or AFTF in Asia. Of the remaining 28%, of them 9 are currently going through the process of applying for IFAT membership.

    People Tree encourages its Fair Trade partners to become IFAT members. IFAT is a global network of Fair Trade organizations; it is member based network that acts as a monitoring and accrediting organization. People Tree is very active as an IFAT member.

    People Tree expects all producer partners to meet IFAT Fair Trade standards. People Tree is committed to encouraging partners to become IFAT members and to supporting them through organizational capacity building to do this.



    Payment of a Fair Price

    A fair price in the regional or local context is one that has been agreed through dialogue and participation. It covers not only the costs of production but enables production which is socially just and environmentally sound. It provides fair pay to the producers and takes into account the principle of equal pay for equal work by women and men. Fair Traders ensure prompt payment to their partners and, whenever possible, help producers with access to pre-harvest or pre-production financing.
    (International Fair Trade Association, Standard 5)

    Action Bag
    Action Bag, Bangladesh
    Keya Palm
    Keya Palm, Bangladesh
    Swallows
    Thanapara Swallows, Bangladesh

    "Yes, we are very satisfied that the prices paid to us by People Tree are fair and arrived at in a fair way. Due to People Tree fair prices we are now getting fair prices from other buyers. People Tree costing sheet help us to get a fair price"
    Folk Bangladesh, Bangladesh.

    The payment of a Fair price results in our producers receiving, on average, a daily wage which is double the local average. Producers also benefit from developing their skills, better equipped their work places, improved production efficiency and better environmental practices. The result of continual orders and assistance from People Tree.

    Producers also benefit from People Tree's advance payment policy of 50% of the order value, this enables producers to buy raw materials and pay wages promptly. People Tree's commitment to increasing the size of the orders it places with its partners from year to year (over 50% growth since 2004), has increased investment in training and work opportunities at a living wage for new people in the community.

    Some statistics from our Social Review:

    • On average daily producer wages are 199% better than local average wages in Africa, 197% better than local wages in Asia, and 169% better than local average wages in Latin America.
    • India is the country in which producers are the best paid in comparison to local wages. Producers in India are paid on average 258% more than the local average wage.
    • In Bangladesh Thanapara Swallows pays wages that are the highest in comparison to local average wages (wages are 568% above the local average wage) as little other livelihood opportunities exist.
    • The average daily wage of producers working on People Tree orders is US$3.30.

    Making timely and fair payments for products
    When asked 78 % of People Tree producers were satisfied that they achieved a fair price. 7% were not satisfied. This was largely due to orders being too small to offer on going employment. They wanted larger orders from People Tree.

    Crafts of Africa

    For promptness of final payment only 2% were unsatisfied, which could be due to delays in local bank transfers.


    Crafts of Africa

    Producers expressed great satisfaction with People Tree's observation of Fair Trade standards. Questions which dealt with producer satisfaction of final payment, pricing, and advance payments rated most highly. Producers also noted significant improvements in the area of product development since 2004. Timely advance payments helped producers to reduce costs of financing interest on loans of 18% per annum and more.



    Gender Equity

    Fair Trade means that women's work is properly valued and rewarded. Women are always paid for their contribution to the production process and are empowered in their organizations.
    (International Fair Trade Association, Standard 6)

    Lawyers
    Lawyers are trained in women's
    rights and how to campaign
    against domestic violence in the
    village.
    Schools
    Fair Trade supports schools and the education of girls.
    Women
    Even in male dominated industries
    like hand weaving women are coming
    forward to take up the challenge.


    Fair Trade promotes work for marginalized groups. Women represent over 80% of People Tree's producers. This means greater opportunities for women, and a strengthening of their economic earnings and social position. Better earnings, training and self confidence help women to take leadership roles in their workplace and community and to promote gender equality in society and equal rights for women.

    "Producers living standards have been improved and help increase their respect in the community. Their children, even the girls, now have opportunities for better and higher education"
    Mennonite Central Committee (MCC), Action Bag Handicrafts, Bangladesh.

    "Fair Trade enables women to get more part time jobs which help them to become economically empowered. Fair Trade helps strengthen women's position in the family and society."
    Kumbeshwar Technical School, Nepal.

    Women's development
    Women are involved in the decision making process. All of People Tree's producers pay their female and male producers equally. Management teams have 57% female representation.

    How Fair Trade helped women get ahead
    Raihan Ali, Director, Swallows reports from Bangladesh:

    • It has reduced early marriage among teenage girls. One of the big problems facing women in rural Bangladesh. Because of early marriage there was a higher birth rate and a higher mortality rate and poorer health of these young mothers.
    • It reduced polygamy. Traditionally Muslims men marry more than one woman. As women gain greater economic power they have pushed for this to become socially unacceptable.
    • Women producers have gained decision making power in their families. Men used to make all the decisions (such as food, clothing, child education, children's marriages and the use of family income.)
    • Women have the freedom to move from one place to another. To visit relatives or go to the market.
    • Traditionally women were solely responsible for the cooking and taking care of the children, they had no recreational life. Now as women come together in the workplace, they share, they talk, laugh and enjoy life more.
    • Women are aware of the political, social and environmental situation that they live in and are now able to make decisions about the community and their families based on this knowledge.
    • Increasingly women are becoming literate and numerate allowing them to start up their own small businesses, such as livestock rearing and vegetable gardening.
    • v
    • Women have access to legal and social support services such as programmes raising awareness on domestic violence and child trafficking.
    • Women are proud of what they and their daughters have achieved for themselves here at Swallows. Some even go into politics and work to help the rural community to develop policies that are good for women and children.


    Working Conditions

    Fair Trade means a safe and healthy working environment for producers. The participation of children (if any) does not adversely affect their well-being, security, educational requirements and need for play and conforms to the UN Convention on the Rights of the Child as well as the law and norms in the local context.
    (International Fair Trade Association, Standard 7)

    • Improved earnings and economic viability means that producers can afford to invest in better work places which are healthy, have good light, and meet health and safety standards. Here are some ways that Fair Trade intervened to make a difference.
    • Artisan Hut work shed and dormitory
      When People Tree first visited Shuvo weaving in Bangladesh, a problem was apparent. The weavers in the group were working in dark and cramped quarters and many had to travel long distances to and from work, so they slept beside their looms. People Tree started fabric development, placed good orders, helped with a loan to rebuild the workshop and then built a dormitory for the weavers to stay during the week and a kitchen so that they could cook their own meals.
    • In September 2006, Thanapara Swallows' received US$4,000 from People Tree and Global Village to open a day care center for babies and pre-school children. The mostly female producers' working for Swallows were finding it difficult to provide care for their younger children as there were no care options available. Mrs. Kushida, who works at Swallows and has a 2 year old son, says that she used "to run off to work in a rush leaving my son with my mother, who is now very old. I used to worry because there is a big dog near my house, so the little one wasn't free to go out of the house. It was too dangerous." Since the Day Care Center opened she says that she has peace of mind. "He really enjoys being at the Day Care Center and on Fridays [a holiday] he begs me to bring him here! The Day Care Center is a big help to us."
    • Funded by People Tree and Global Village the center has six qualified teachers and assistants look after the children and mums pop in to breastfeed 3 times a day or more in the case of the smaller babies.
    • People Tree has been working with Thanapara Swallows in Bangladesh for the last 10 years, it now accounts for 53% of their turnover. Over this time the handicraft center has grown employing 200 women. People Tree secured US$80,000 funding to develop a second floor to increase space for workers. The building will start in 2007 and should be complete in early 2008

    "This so comfortable a place for us to work and stay. I earn well and rest well and look forward to seeing my family at the weekend. Lots of weavers from surrounding places come to look at our place here we have good lights and fans for when it is very hot. They are starting to ask their bosses for better place too"
    Shuvo Weaver, Bangladesh.



    Child Labour

    Fair Trade Organizations respect the UN Convention on the Rights of the Child, as well as local laws and social norms in order to ensure that the participation of children in production processes of fairly traded articles (if any) does not adversely affect their well-being, security, educational requirements and need for play. Organizations working directly with informally organized producers disclose the involvement of children in production.
    (International Fair Trade Association, Standard 8)

    Child Labourer
    Child labourer in India.
    Child Labourer
    Making accessories and trinkets
    for conventional traders.
    Child Labourer
    Child Labourer in India

    People Tree campaigns against child labour and actively promotes the observation of the UN Convention on the Rights of the Child by promoting Fair Trade, so parents can afford to send their children to school - not work.

    • People Tree also develops strong relationships with the management teams of our partners to ensure that they are as committed as People Tree is to ensuring that children are not employed. Partners conduct regular visits and promote awareness about child labour and the importance of sending children to school.
    • By working in collaboration with partners to support their social activities in this area. People Tree and Global Village support a number of schools run by partner organizations. For example People Tree and Global Village provide financial assistance to Thanapara Swallows in Bangladesh for the running of their school which 300 children currently attend. People Tree also provides financial support to Kumbeshwar Technical School and to a number of other partners' schools.
    • By ensuring through visits and other checks that none of its partner producers are employing children.
    • People Tree works with partners like Tara Projects in India to protect children's rights by advocating against child labour and the inequitable trading and economic systems that promotes it.

    Through People Tree and Tara projects the 'Sports for All' campaign has helped children of our producers and children of vulnerable communities, like those whose slum homes were flattened by the government. Delivering games like badminton and karim (a board game) for the girls, a board game and cricket and balls for the boys.

    Sports for all

    By promoting livelihoods and Fair prices to adults People Tree is helping solve the need for child labour. It is usually low prices that create the need for child labour as child wages are a third that of adult wages.

    Thanks to adults and particularly women being given an opportunity to work under Fair Trade conditions the economic situation of the families improves, the family can eat better, access better shelter and generally provide for itself and subsequently is not forced to send their children to work.

    Guinea from Thanapara Swallows, in Bangladesh spoke during her visit to People Tree in 2006 about how the practice of polygamy and the occurrence of domestic violence were becoming less and less common since women were able to provide for themselves and their children. In particular she explained that this was having a great impact on young girls who now were not only educated but were also able to look forward to real opportunities for themselves in the future. She related how many young girls now expect to further their studies and develop their own careers; these are very different aspirations to those that their mothers would have had at their age.

    Because Fair Trade is about supporting women and the social development of the community as well as protecting the environment, children benefit from a healthier environment and community to grow up in.

    The Fair Trade community is not against child work, when children help their family after school with cooking and chores. Indeed this is a reality for many households in developing countries.

    The World Fair Trade Day 2007 theme 'Kids need Fair Trade' provided the People Tree team with a unique opportunity to interview producer partners' kids about how they felt about street children and child labour.

    Case study - Why families don't send their kids to school

    KTS started in 1983 to help a large community of an untouchable caste of people called 'Street Sweepers' - a euphemism, as they were expected to clear the street sewers of human waste. In return they received left over food from houses around which they cleaned. They barely had clothes, and were often sick due to the poor quality and unhygienic food they ate and the squalid shacks they shared with livestock.

    When KTS first opened a child care center for the children of the street sweepers, after a few days the children stopped coming - their parents needed them to work and didn't see the point of them learning to read and write. Then the founders found the solution; they offered short vocational training courses in knitting, carpentry and carpet making to the parents. The parents learned a trade and improved their earnings. With more regular earnings they were able to provide regular meals for their families and, convinced by the power of learning from their own experience, they started to send their kids to attend classes.

    KTS school
    Children at KTS's primary school.

    Today, there are 237 children aged 3 - 12 years old who receive free education at the KTS School and 150 trainees from all over Nepal graduate each year. Some start their own carpentry businesses in their home villages and other experienced women knit sweaters for People Tree. The community is now largely integrated into mainstream society and although still slightly discriminated against they have social and economic independence. Some of their children have become office workers, others have started their own restaurants, and one recently became a nurse, which would have been unthinkable twenty years ago.

    KTS
    Photo of Safia Minney with Sunita Giri (left) and Tirtha Tandukar (right), knitters at KTS.



    The Environment

    Fair Trade actively encourages better environmental practices and the application of responsible methods of production.
    (International Fair Trade Association, Standard 9)

    environment environment environment

    People Tree's founder, Safia Minney, an ecologist, proposed that the environment could be added as an IFAT Fair Trade standard. She passionately believes that trade could work whilst respecting both people and the planet.

    People Tree has been a pioneer in the Fair Trade movement for environmental production methods and organic agriculture for foods and cotton.

    People Tree's Eco Policy

    • To promote natural and organic cotton farming
    • To avoid using damaging chemicals
    • To use natural, recycled and biodegradable substances where possible
    • To recycle where possible
    • To protect water supplies and forests

    "By working with People Tree we have become more aware about the use of AZO free dyes (...) we have also become more aware about the use of Nickel free plating. We try to avoid plastic. We are thankful to People Tree for their efforts to motivate us in this direction.
    Tara Projects, India

    Environmentally-friendly production

    People Tree and partners collaborate to minimize all negative environmental impacts and promote environmentally friendly alternatives.

    For 63.5% or 33 of People Tree's producers, People Tree's Eco Policy has been a catalyst in changing the way they produce their products, and in helping protect their environment.

    • People Tree has pioneered the first organic cotton supply chain to achieve the soil association mark for organic products in the developing world.
    • The use of organic cotton, 40% of all products sold today by People Tree are 100% Organic Cotton
    • The use of sea freight to reduce CO2 generated by air freight
    • The introduction and use of Ago-free dyes with all of People Tree's clothing, bags, bedding, etc
    • The use of natural dyes
    • The use of recycled and waste fibers in paper and cardboard making
    • The use of lead free paint/Nickel free plating/non-chlorine bleaching agents
    • The recycling of waste and treatment of waste water
    • Encouraging the use of natural and plentifully available local materials
    • The use of hand production

    "Our association with People Tree has kept our interest in natural dyes alive and active."
    Mura Collective, India.

    Artisan Hut (Bangladesh), one of People Tree's key partners, specialises in the production of woven and embroidered garments. Artisan Hut's director Monju Haque, worked with People Tree, their long time Fair Trade partner, to source organic cotton from India`. There is no Organic Cotton in Bangladesh yet. People Tree sponsored Monju to travel to India to meet People Tree's Organic Cotton partner and to discuss buying Organic Cotton yarn. Several months after their meeting the much anticipated organic Fair Trade yarn arrived by boat and was hand woven and tailored into the first ever hand woven Organic Cotton fairly traded suits.

    "The cotton is of very high quality as it is the first flush and superior to what we are usually are able to buy," says Monju, "The fabric feels so good. Thanks to our close partnership we have managed to turn a dream into reality and this is helping even more weavers to earn a livelihood and educate their children. We would not have been able to do this without People Tree's support."

    People Tree started an organic cotton project in Bangladesh in May 2007. Today Bangladesh is famous for its garment factories, but surprisingly, produces only 2% of its own cotton. Cotton comes from India, Pakistan and China. Synthetic fabrics are imported from Korea, China, Hong Kong and other countries and made into clothes using cheap Bangladeshi labour. Safia visited the conventional cotton-growing areas of Tangail, to ask farmers about the barriers keeping them from growing cotton organically in Bangladesh.

    Mr Monydeen, one of the farmers visited by People Tree, explained how he felt that current farming practices in Bangladesh were like a slow poison and how he would love to try to go back to the way his ancestors farmed, organically, if it was better for his health and protected the environment; but he remarked that he needed training to learn how to do this. This would benefit farmers' health too as they inter-crop their own food and vegetables, grown organically they benefit from better health.

    Safia visited government, business and NGO representatives and was able to secure commitment from these sectors to trial organic cotton.

    People Tree has supported training for three agricultural extension workers from Bangladesh to work with People Tree's organic cotton partner in India. They learnt how to prepare the soil with organic fertilizers whilst learning about Fair Trade.

    People Tree supports the project and commits to buying the cotton grown organically in the future to promote sustainable agriculture and the promotion of farmer's livelihoods.

    People Tree paid for organic certification and have promoted organic farming
    Meru Herbs, Kenya.

    Reviving traditional skills
    People Tree uses hand production, which is very environmentally friendly; to make products with the only energy resource we have in plentiful supply - people's hands. Hand production reduces the need for oil-based energy, is carbon neutral and reduces waste through mass-production. Highly value-added products provide marginalized people with incomes, whilst using the minimum amount of materials. This also gives great opportunities for artisans whose livelihoods are undermined by machines. These skills will be lost for ever and unless they are made commercial they will become obsolete.



    Trade Relations

    Fair Trade Organizations trade with concern for the social, economic and environmental well-being of marginalized small producers and do not maximise profit at their expense. They maintain long-term relationships based on solidarity, trust and mutual respect that contribute to the promotion and growth of Fair Trade. Whenever possible producers are assisted with access to pre-harvest or pre-production advance payment.
    (International Fair Trade Association, Standard 10)

    Trade Relations Trade Relations Trade Relations

    People Tree's Fair Trade partner producers are all Fair Trade organizations.

    Most of our partners who engage with non-Fair Trade buyers wish to discontinue this practice due to commercial practices such as the dumping of orders, late payments and very low prices. However for this they need the Fair Trade market to grow.

    • For 14 of our producers we account for over one fifth of their total turnover. People Tree understands the importance of continually expanding order sizes.
    • 46% of People Tree's partners have been partners for over 10 years, and 96% have been People Tree's partners for over 5 years.
    Trade Relations

    People Tree was scored exceptionally highly by partner producers for trade relations.

    "We are Bangladeshi's Fair Trade manufacturers and understood Fair Trade business is charity and a small business with irregular orders and less quality products. But People Tree breaks our above thought by their activity/action plan. Which making us skill to run business, make quality products, hopes to go forward for business. It helps also to create our domestic market. So that our producers income, buying capacity are increasing. For example some of our weavers have started their own hand looms and business by using their savings. Generally embroidery works do at home base, now Artisan Hut built capacity to take them at a workshop with high wages. Women are using their savings money to purchase land for living. Most of women raise their hand when you ask question that whom are getting importance at home after joining at Bangla Selayi workshop."
    Artisan Hut, Bangladesh.,/strong>

    Stability of orders
    People Tree operates under a system of 50% advance payment where needed and guarantees the balance of payments upon receipt of orders. Producers are not only ensured timely payment, but are able to avoid taking out loans to begin production, maximizing their ability to pay producers fair prices and invest in capacity building. People Tree also endeavors to increase orders by a minimum of 10% from year to year. This way our partners are able to plan and make long term investments.